1. Welcome to Tacklebox.com.au

    You are currently viewing the forum as a guest which gives you limited access to view the discussions and access some of our other features. Registration is simple, fast and absolutely free.

Invest in Murray Cod!

Discussion in 'Fishing General Chat' started by CornaCarpio, May 27, 2019.

  1. CornaCarpio

    CornaCarpio Well-Known Member

    179
    751
    93
    Jan 9, 2018
    My Dad just rang me to say I should invest in Murray Cod, after he heard a snippet on ABC radio. Here is the link to the article:

    https://www.abc.net.au/news/rural/2019-05-26/blumenthal-has-a-taste-for-riverina-murray-cod/11147318

    Basically, there's a company called Murray Cod Australia (MCA) thats listed on the ASX that specialise in breeding and selling Murray Cod.

    Here is their website: https://aquna.com/

    What do you guys think? Would you be game to 'invest' in Murray Cod? At the time of positing, a share in MCA will cost you 16 cents (it may be interesting to compare this price in a year or two). Part of me wants to, part of me doesn't want to...

    Pros:
    - Growth of 340% since being listed on the ASX 2 years ago
    - Strong demand both in Australia and overseas
    - Premium product
    - With a commercial fishing ban on wild Murray Cod, MCA are well positioned to be a dominant supplier of Australia's most iconic fish!
    - Limited direct competitors at the current time

    Cons
    - Company didn't make a profit last year
    - Doesn't yet pay a dividend
    - Risky business may go the same way of Yabby Farms, Emu Farms, Olive Farms, etc
    - Biological risk, eg. disease to the fish
    - Environmental risk, eg. drought, water permits, etc
    - Economic risk, eg. changing consumer tastes, strength of the Australian economy, tariffs, etc
     
  2. diesel

    diesel Well-Known Member

    1,202
    3,854
    113
    Sep 23, 2016
    The main reason that a lot of those ventures failed, CC, was due to over saturation - too many had visions of grandeur that they were on a surefire 'get rich quick scheme' without doing thorough due diligence to gauge whether or not it would be a safe & secure investment. If supply exceeds market demand then only those with a good sound business model will survive, usually those who diversify.

    As a long term investment, Murray Cod may be something to consider. I would want to know a lot more about the venture before committing to buying any shares, things like how & where it all takes place, will the industry be government or self regulated, how many other players are likely to enter the game and a thorough background check on the company directors & management team to satisfy myself that I'm not feeding funds to operators that have a dodgy history of past failed enterprises.

    Now, if it was an industry established to harvest carp and export to those countries who eat them, I would throw money into such a venture.

    Jeff
     
  3. diesel

    diesel Well-Known Member

    1,202
    3,854
    113
    Sep 23, 2016
    Ha, I should have read the links you provided before I commented. The 'how & where' is all there and on face value I would give it the thumbs up.

    Their proposed expansion plans are impressive.

    Jeff
     
  4. CornaCarpio

    CornaCarpio Well-Known Member

    179
    751
    93
    Jan 9, 2018
    Yep, I'm not saying put the house on it Diesel, but having a little punt might be interesting...

    The fact that they're looking to expand by building 35 more ponds and going from selling whole-fish to filleted and smoked cod straight to retailers and consumers is another cause for optimism.

    I should also point out that this thread is not financial advice, and I have nothing to do with Murray Cod Australia!
     
  5. creekboy

    creekboy Well-Known Member

    858
    1,845
    93
    Sep 7, 2016
    Not rushing in just yet, a few to many doubts for me. Cheers, Lyall.
     
    ratherbefishin, Old fisho and kev209 like this.
  6. CornaCarpio

    CornaCarpio Well-Known Member

    179
    751
    93
    Jan 9, 2018
    Well, I finally bit the bullet and bought some MCA shares for 16 and a half cents a pop!

    I've been following the company quite closely lately and am pleased to report they are playing a part in helping some Murray Cod survive the fish kills along the Darling River in Menindee by donating some aerators and by looking after 44 Murray Cod found in the river near Pooncarie. According to their facebook page, "this is a great example of government and industry working together to help secure fish stocks in the Murray-Darling Basin."

    You can read more about it here:

    https://aquna.com/aquna-working-to-save-further-fish-kills/
     
  7. Charles1960

    Charles1960 Member

    12
    34
    13
    Apr 4, 2018
    Anyone with an Australian Super? then your already invested with them, $ 8000 of my retirement so lets hope their doing alright.
     
    Old fisho and Rod Bender like this.
  8. CornaCarpio

    CornaCarpio Well-Known Member

    179
    751
    93
    Jan 9, 2018
    Yeah Charles, I am. I noticed Aus Super and the Fat Duck Group had bought in, which gave me a little extra confidence to invest.

    The share price is down 1 cent since I bought, but they've just opened up a retail outlet in Griffith and more ponds are on their way so hopefully things are on the up. Plenty of good signs for continued growth in the future.

    CC
    Not financial advice
     
    Old fisho, Rod Bender and Madfisher like this.
  9. Rod Bender

    Rod Bender Well-Known Member

    1,171
    3,688
    113
    Aug 20, 2016
    Some questions from someone who has never done stocks before...

    When the market has a huge crash and share prices plummet, why does everyone sell them as quick as they can at a loss if need be? It wouldn't be worth just hanging onto until it recovers?

    If you hang onto the shares over time, do you get some form of payout each year, like interest or something?

    If you want to buy shares in a company, is there always shares available from all companies or is that not the case.

    cheers
    Team Bender
    Thinking of investing in the company that makes red and whit 3/4 inch floats.
     
    Old fisho likes this.
  10. CornaCarpio

    CornaCarpio Well-Known Member

    179
    751
    93
    Jan 9, 2018
    1A) Because they're idiots
    1B) Yes, definitely better to hang on and wait until the market recovers. I think the 2009 Global Financial Crisis (GFC) really showed this. At the time a lot of people sold their shares at a considerable loss. I think most of those people would love to be paying 2009 prices right now! Think of it when there's a '40% off fishing sale'. You'd buy more gear right?

    Having said that, there is no use trying to catch 'a falling knife'. A guess a lot of people were scared they were going to lose all their money and it is worth pointing out that share prices can go down (and stay down) as well as up. AMP and Telstra are good examples of this.

    Yes, most profitable companies return some of their profits back to shareholders in the form of a dividend. Dividends are usually paid out twice a year.

    Now Murray Cod Australia (MCA) is still in the early stages and is not making any money at the moment. Therefore, it currently does not pay anything to its shareholders. A highly profitable company on the other hand, such as the Commonwealth Bank of Australia (CBA) does. It pays a dividend twice a year (of around $2) to shareholders. The amount a company pays back to its shareholders is dependent on its profitability and the strategic direction of the company. In numerical terms, it is known as the dividend yield. Most 'blue-chip' stocks on the Australian Securities Exchange (ASX) return about 4-5% of the share price back to shareholders as dividends. Dividends are usually taken as cash, or some companies offer a dividend reinvestment program (DRP), meaning you get more shares.

    For a market to exist, there has to be a buyer and a seller. They also have to agree on a price. If you want to sell a share for 20 cents, but I'm only willing to pay 18 cents, then the deal will not get done. In sharemarket terms, this is known as the 'buy-sell spread', i.e. the difference what the seller wants and what the buyers wants.

    Now, most major companies such as CBA, ANZ, BHP, Woolworths, Coles, etc are highly liquid, trading every minute, if not every second the stock market is open. Relatively unknown shares, such as Murray Cod Australia (MCA) are not. They don't have the volume of sales the more popular companies do. This means they are relatively illiquid. For example, I was quoted 16 cents to buy MCA, so I put the order in through my broker. Trouble was - no one wanted to sell their shares for 16 cents, even though it was the 'market rate'. Again, we're back to a definition of what a market is: the interaction between a buyer and a seller. I couldn't buy shares if no one was prepared to sell any! I waited a few days and raised my offer to 16.5 cents before someone was willing to sell and a deal was made.

    Hope this made some sort of sense and helps in some way.

    Chips
    Thinking about opening a Tacklestore in Shepparton
     
  11. Rod Bender

    Rod Bender Well-Known Member

    1,171
    3,688
    113
    Aug 20, 2016
    Your response was very helpful CC! Seems a bit more complex than I thought, although I did understand what you said!
    cheers
    Team Bender
    Looking forward to the 40% off opening sale at your tackle store!
     
    diesel and Old fisho like this.
  12. diesel

    diesel Well-Known Member

    1,202
    3,854
    113
    Sep 23, 2016
    Jim, playing the stock market isn't all that different to other forms of gambling, except that when you have a punt on the neddies or lotto, if you lose then you have lost the lot. Rarely is that the case with the stock market unless the company you have invested in goes belly up.

    I have shares in a couple of companies that don't pay huge dividends, but are very secure and if I ever wanted to cash them in, I would have no trouble finding a buyer. Those that look for a get rich quick investment with buying and selling shares run the risk of losing a lot of money or they make a lot of money - no different to any other type of gambling.

    I have friends who put tens of thousands of dollars into buying gold stocks back in the 80's when it looked like the price per ounce would never stop going up, but it did stop and then rapidly dropped and it has taken almost 40 years for the price to recover to that which people paid when it was at it's peak. A smart investor must be prepared to weather the bad times, not just reap the rewards of well paid dividends.

    Jeff
     
    Last edited: Nov 4, 2019
    Rod Bender and Old fisho like this.
  13. Old fisho

    Old fisho Well-Known Member

    1,551
    4,913
    113
    Sep 14, 2016
    I wonder how the Financial Review will take to this new found source of entertainment. Word used loosely there as of course it's serious talk and a good topic. I hope Bender let's us all know when his 3/4" 'float' company finally floats. I'd like to get in their before the issue is wholly taken up. What do you think the opening price might be Jim and how big a bundle?
    Noel
    Invested in fishing gear all his life. Now has lots of fishing gear and lots less dollars.
     
    Rod Bender, Madfisher and diesel like this.
  14. Madfisher

    Madfisher Well-Known Member

    366
    1,211
    93
    Aug 14, 2016
    Just as a matter of interest back a bout 2001 i brought a boat and borrowed some money from the bank to finnance it. This was through the state bank. As i had a young son and a mortgage at the time I took there offer of having insurance. Anyway blow me down , I get offered shares in the state bank because the insurance arm was demutiselised . I opted to put them in DRP , as you dont miss what you dont have.
    Then a few years later the Commonwealth bank takes over the State bank and I was offered a 3 for 1 deal, and again I opted to keep it in a DRP. So i had the grand total of 80 commonwealth bank shares worth $20 ea. Today I have 260 worth around $20000 , not bad for taking out some insurance years ago.
     
    diesel and Old fisho like this.
  15. Old fisho

    Old fisho Well-Known Member

    1,551
    4,913
    113
    Sep 14, 2016
    Nobody offered me a deal like that while I was buying fishing tackle. It's now worth countless thousands to me and stuff all to anyone else. As often said my biggest fear will be Boss selling it all for what she thinks I paid for it.
    Noel
    The big sale can't be that far away either.
     
    Madfisher likes this.
  16. diesel

    diesel Well-Known Member

    1,202
    3,854
    113
    Sep 23, 2016
    I used to think that way also Noel and recently my wife and myself have been discussing what happens to a lot of our stuff in the event of ……?

    My fishing gear was high on the list of 'what to do with it' and we have decided that in the event of me falling off my twig before her, she is to bundle it all up, head to the nearest popular fishing jetty and look for the kid who has the cheapest & least amount of gear and give him or her the lot. That will be my contribution to keeping the passion alive.

    Jeff
     
    Rod Bender likes this.
  17. Rod Bender

    Rod Bender Well-Known Member

    1,171
    3,688
    113
    Aug 20, 2016
    It would be a good idea to get some cheap stocks when the market crashes...or isn't going that well, and then be patient?

    Not sure...but will have a special deal...enter the code 'CC'...and be charged double!
    cheers
    Team Bender
    Financially sound!
     
    Last edited: Nov 4, 2019
  18. diesel

    diesel Well-Known Member

    1,202
    3,854
    113
    Sep 23, 2016
    Yep, if you buy the right stock at the right price and you are prepared to sit back and wait then you could do well out it, but it all depends on your level of patience.

    I bought a few thousand shares in CBA back in the mid 90's for less than $10 a share and figured that if they ever reached $100, I would sell them. In early 2015 they peaked at more than $90 and I was tempted to unload them which would have been more than 800% profit in 20 years, but I hesitated hoping that the price would keep on going up. It didn't, it dropped by about $20 a share in the latter half of 2015 and has been up and down ever since.

    As I stated, it's a gamble Jim, but if you play the market right, it can be very profitable.

    Jeff
     
    Rod Bender likes this.
  19. CornaCarpio

    CornaCarpio Well-Known Member

    179
    751
    93
    Jan 9, 2018
    A 'smart' investor would also diversify, at least a little - across shares and/or asset classes. Obviously this is harder to do when you're just starting out, but the idea is to reduce risk and not have all your eggs in one basket. Putting all your money into gold is, well, a little bit like putting all your money into Murray Cod shares...

    CC
    Crispy Commissions!
     
    Last edited: Nov 4, 2019
    Rod Bender and diesel like this.
  20. diesel

    diesel Well-Known Member

    1,202
    3,854
    113
    Sep 23, 2016
    Gold stocks are the backbone of the financial world CC, always has been and most likely always will be.

    The problem with a lot of investors who did their dough back in the 80's was nothing more than letting greed over-ride common sense - they purchased stocks without watching the indicators that were suggesting that the gold price had reached it's peak.

    I agree with you in that a 'smart' investor would also diversify and not put all their eggs in one basket, but choosing the right basket is often the problem. I made a couple of bad investments many years ago, Telstra being one of them and I learned from the experience, don't rely on so called experts to always give good sound advice when it comes to finances.

    Jeff
     
    Rod Bender likes this.

Share This Page